Northland forest leaders welcome restrictions

Northland and national forestry leaders have welcomed a government move
to make foreign forestry investors commit to processing more wood in New Zealand.

Forestry Minister Shane Jones made the announcement at a meeting of forestry
industry leaders in Whangarei late last week.

Mr Jones said the move was all about creating more jobs and ensuring there was more
value added to the country's wood-processing sector. It would also go some way to
helping the Government's commitment to plant one billion trees in conjunction with
private industry.

He said overseas investment in forestry that brings genuine benefits to New Zealand's
economy and its environment will be welcomed.

The inclusion of a Forestry Directive in the new Ministerial Directive Letter issued to the
Overseas Investment Office (OIO), sets out the Government's policy approach to
overseas investment in sensitive New Zealand assets.

"The inclusion of a specific directive for forestry recognises the importance of forestry
to the New Zealand economy and regional communities.

"As part of the coalition agreement, this Government has committed to an ambitious
tree-planting programme that will require a partnership between the Crown and the
sector itself. High-quality overseas investment can certainly help us achieve this goal,'
Mr Jones said.

"Forestry, and the processing of forest products, are significant sources of
employment in our regions and we want to build on that to get more people into a
sustainable workforce.

"We want to encourage value-added wood processing to generate jobs and other
benefits for our regions. This directs the OIO to place high importance on increased
processing of primary products and the advancement of the Government's policies
when assessing applications for consent.'

The minister said about 70 per cent of the Northland's and the country's forestry
interests are owned by overseas companies and he has had enough of raw logs being
'scooped up and sent overseas, with no value added to the New Zealand economy'.

Tai Tokerau Maori Forestry Collective leader Pita Tipene said the plans would help to
create jobs in Northland, both in planting more trees and in wood processing.

The collective owned about 60,000ha of forestry and Mr Tipene said Ngati Hine,
which owned about 5500ha of land, had just submitted a proposal to the Government
aimed at getting help to plant about 4000ha in forestry to be harvested and the rest in
manuka to set up a manuka honey industry.

'We want to get the trees into the ground as soon as possible. But it will take 30 years
to get a return on forestry so we want to get the manuka in so we can start making
honey and benefiting our people,' he said.

Wood Processors and Manufacturers Association chairman Brian Stanley also
welcomed the plans, saying this was an exciting time for forestry and wood-
processing industries.